2026 Hyundai Palisade Hybrid Review

My brand-sensitive sister and her husband (who happen to live in an affluent neighbourhood) have a big family: two dogs, one teenager, and two toddlers.

They currently drive a Mercedes-Benz GLC-Class — a small crossover that’s bursting at the seams trying to accommodate their family’s busy lifestyle. While a three-row Mercedes is out of reach for them, I’m trying to convince my sister that the redesigned 2026 Hyundai Palisade Hybrid is a legitimate alternative worth considering. Her husband is already on board, and I think he’s hoping I can sway her away from picking their next vehicle based solely on how much it impresses their neighbours.

“The interior is actually nicer than your current ‘Benz,” I say. “And this is one of the best three-row SUVs I’ve driven in a while.”

She responds, “But it’s not a Mercedes.”

That’s usually where the conversation ends. But with more new Palisades popping up in her neighbourhood, she’s suddenly more receptive to the idea of driving a practical and stylish vehicle that doesn’t have a Mercedes badge on it.

Styling 9.5 / 10

I suspect one of the main reasons the new Palisade is winning over my sister’s well-heeled neighbours is that from certain angles — and if you squint — it looks faintly like it’s related to one of Land Rover’s Range Rover models. Hyundai has been boldly experimental with its design, and without a long-standing visual heritage to protect, the brand can afford to take risks in pursuit of a luxury-inspired aesthetic.

That gamble paid off with the Palisade. The floating roof, upright grille, assertive light signature, and elegant proportions all feel convincingly upscale, allowing the Palisade to roll through an affluent neighbourhood with surprising confidence.

The cabin, too, is refreshingly and genuinely chic. I wouldn’t recommend the almost-white leather found in this tester — especially if you have kids — but the available brown leather brings Bentley-on-a-budget energy to the cabin. Paired with Hyundai’s Robust Emerald paint ($250), the brown-and-green combination looks old-money swanky. Interesting shapes, quality trim, layered textures, and subtle ambient lighting all come together in a cohesive design that looks like it came from a far more premium brand.

Power 9 / 10

The Palisade Hybrid has a turbocharged 2.5L four-cylinder engine that works with some electric components to make a combined 329 hp and 339 lb-ft of torque — a big upgrade over the 287 hp and 260 lb-ft of torque made by the V6 under the hood of the non-hybrid version. It’s enough to make the hybrid the one to pick since it addresses some concerns that the V6 version can feel sluggish at times. All-wheel drive (AWD) is standard, and the transmission is a six-speed automatic. The hybrid automatically flips between gas or electric power, or a combination of both, without any input needed from the driver, and can run solely on battery power in low-power situations like coasting, idling, or parking.

Driving Feel 9 / 10

The hybrid powertrain comes together smoothly and cohesively. The flip between gas and electric power happens pretty much undetected. The suspension is comfortable and a bit softer than expected (but not enough to bother me), the steering and braking both feel good, there’s plenty of passing power, and while I wouldn’t call the Palisade sporty, it drives well for something this size.

The Palisade’s footprint is large, but it doesn’t feel like a cruise ship from behind the wheel. It’s easy to manoeuvre and park, offers excellent visibility, and this top trim version comes with a whole bunch of surround-view cameras and parking sensors to add an extra level of confidence.

Fuel Economy 8 / 10

The Palisade Hybrid’s fuel economy is officially rated at 8.3 L/100 km in the city, 7.9 on the highway, and 8.1 combined — excellent figures for a vehicle this large with AWD. Over the course of 1,600 km of testing, however, those figures seemed unachievable, even with the volatile winter weather and winter tires accounted for. The indicated average across this multi-week test was 9.3 L/100 km, and that was with eco mode engaged the entire time. The best fuel economy I saw during my three-week winter test was 8.8 L/100 km.

While that as-tested average is still better than the non-hybrid’s ratings (13.4 in the city, 10.0 on the highway, 11.9 combined), it should be easier to meet the Palisade Hybrid’s advertised efficiency, even in winter. The comparably sized Toyota Grand Highlander has two hybrid powertrain options, one of which is rated for 7.0 L/100 km combined and the other 8.8.

Practicality 10 / 10

With a teenager who plays soccer and has lots of friends, a little boy (almost 3 years old) who is destined to become some sort of pro athlete, a little diva (turning 5 this year) who already has a social life most adults can only dream of, a 12-week old puppy that’s going to grow as big as a pony, frequent cottage road trips, and grandparents on both sides that live about two hours away, my sister and her husband need a vehicle that can adapt. The Palisade seems built for that exact task.

Storage cubbies of all sizes are everywhere, cup holders are bountiful, every passenger gets fast-charging USB-C ports, there’s a grounded household outlet in the second row, and the second- and third rows are fully powered in this top Ultimate Calligraphy trim for easy folding.

The functionality of the second- and third rows is so well thought out so busy families can use them with barely any friction. Buttons in the trunk don’t need to be held down to work, so you can choose your configuration, press the button, and walk away. If the third row needs to be folded, the second row slides forward and the third row headrests tumble automatically so they don’t get caught on the seatbacks and you don’t have to run around trying to fix everything.

Getting into the third row is also a one-button motorized affair, and it’s so easy that a 5-year-old might be able to do it themselves (and there’s still plenty of room even if there are child seats in the second row). Both sets of rear seats can slide forward or back to allow for more leg- or cargo room, and there’s even a grab handle integrated in the C-pillar. This is one of the most family-friendly and convenient-to-configure vehicles out there.

The trunk has underfloor storage and offers 540 L behind the third row. With the third row folded flat there’s 1,310 L, and with the second row folded there’s an enormous 2,455 L.

Comfort 9 / 10

The surprise is that the third row is not the inhospitable bunker it can be in some SUVs. There’s enough head- and legroom back there for someone of my height of about 5-foot-7 or smaller to sit comfortably. The Ultimate Calligraphy trim also has a heated third row — a very rare feature, even with luxury brands. In addition, the front and second-row seats are heated and ventilated in this top trim, and the cabin is very quiet.

Features 9 / 10

All Palisade trims come well-equipped with the essentials for comfort and convenience, but the Ultimate Calligraphy comes with nearly every feature imaginable. Some highlights include built-in front and rear dashcams, wireless Android Auto and Apple CarPlay, a wireless charging pad, rear seat quiet mode, head-up display, rear sunshades, heated front washer nozzles, rear camera washer, rain-sensing front wipers, auto-levelling rear suspension, heated and power folding side mirrors, leather upholstery customizable ambient lighting, a dual-panel sunroof, and auto-dimming rear view mirror.

Safety 9 / 10

Standard safety features in all trims include forward collision warning with car, pedestrian, and cyclist detection, junction turning assistance, lane following assist, adaptive cruise control with stop-and-go capability, lane-keep assist, driver attention warning, automatic high-beam assist, rear occupant alert with ultrasonic sensors, rear parking sensors, blind-spot monitoring with rear cross-traffic alert, safe exit assist, highway driving assist, and trailer sway assist.

Higher trims add parking sensors all around, blind-spot camera displays, a most robust forward collision avoidance system, reverse collision avoidance assist, blind-spot collision avoidance assist, and a better highway driving assist suite.

User-Friendliness 9 / 10

The Palisade’s mix of physical buttons and knobs for shortcuts and temperature control is appreciated because it makes navigating the touchscreen less distracting. The touch-capacitive panel for climate control isn’t great, and it would have been better if the vehicle remembered certain settings like the heated seat and steering wheel so you wouldn’t have to turn them on using the touch panel each time you start the vehicle.

Otherwise, the cabin is straightforward and there’s barely a learning curve to it. Even the twist-style gear selector becomes second nature quickly; turn it forward for drive, back for reverse, and press the button for park. The touchscreen’s menus are all logically organized and laid out, the customizable shortcut buttons are useful, and the controls on the steering wheel are easy to use. The keyless entry worked only some of the time during this test, however, with the sensors on the door handle not registering a touch, often requiring me to dig deep into my bag to retrieve the keyfob to unlock the doors.

Value 7.5 / 10

The non-hybrid Palisade starts at a reasonable $53,699 for the Preferred Trend trim plus the $2,100 destination fee, but stepping up to a hybrid comes at a significant premium. The most affordable Palisade Hybrid starts at $60,499, while the range-topping Ultimate Calligraphy Hybrid begins at $65,699. With optional paint, and freight, the as-tested price of this one was $68,049 before taxes.

It’s a sign of the times that a right-sized SUV can feel financially out of reach for many families, yet Hyundai seems to be targeting buyers — like my sister — who have been priced out of traditional luxury brands. Against those marques, the Palisade Hybrid looks like a bargain; a three-row Mercedes GLS-Class starts at more than twice the price of the cheapest Palisade Hybrid, but compared with direct rivals such as the Toyota Grand Highlander Hybrid, it undercuts the value argument by costing a few thousand dollars more. With limited competition in the three-row hybrid SUV segment, that sticker shock may push some shoppers away from the hybrid entirely and toward a conventional gas-powered alternative.

The upside is that the Ultimate Calligraphy trim genuinely raises the bar for the segment. Its feature set, design, and notably upscale interior feel a step above its competitors, helping justify its higher asking price.

The Verdict

After a brief drive around the block in the 2026 Hyundai Palisade Hybrid, my sister let out a frustrated sigh. It wasn’t disappointment — it was the realization that the Palisade had impressed her far more than she wanted to admit, confirming that both her husband and I were right: this might be the best, most realistic contender for their next family vehicle.

Designed with practicality and family-friendliness at the forefront, the Palisade elevates the formula with a genuinely upscale interior and exterior that should age gracefully. Built to handle the toughest family duties, this three-row SUV is equally capable of growing alongside them and adapting to changing needs, all while making everyday life easier for everyone. The Palisade delivers where it counts, offering families a rare blend of utility, functionality, and polish with little sense of compromise.